Lower Mortgage Rates Due To The FED Announcing Lower Interest Rates
This Article Is About Lower Mortgage Rates Due To The FED Announcing Lower Interest Rates
Homeowners who closed their mortgage loans in 2018 should be looking forward to refinancing in 2019.
- Mortgage Rates in 2018 has been the highest since the 2008 Great Recession and Real Estate Crash
- Many homeowners who closed their home loans last year have rates in the 5.0% range
- Lower Mortgage Rates are expected in the coming months due to the Federal Reserve Board holding interest rates steady
- The mortgage markets are expecting lower mortgage rates due to the FED holding rates steady
- Also, with the news by FED Chairman Jerome Powell announcing the FED will most likely cut interest rates doubles down the expectation of lower mortgage rates
In this blog, we will discuss lower mortgage rates due to the recent FED announcements.
The Federal Open Market Committee (FOMC)
Mortgage Rates has been steadily declining since the beginning of 2019.
- Many experts, home buyers, sellers, and lenders thought that mortgage rates would hit all-time highs since the 2008 Great Recession
- However, the opposite happened
- Mortgage Rates have been dropping significantly since the beginning of the year
- It is expected to drop further according to analysts and market experts
- The Federal Reserve Board has been holding interest rates steady
- But many industry experts are expecting the Fed to drop interest rates in the coming weeks
This speculation has lenders lowering rates to a 24 month low.
Massimo Ressa has a national reputation of making predictions that are spot on.
What Does This Mean For Borrowers
The Federal Reserve Board is expected to hold its next Fed Meeting on July 30-31st. Market industry experts are expecting that the Federal Reserve Board will be cutting interest rates between 0.25% to 0.50%.
The Federal Reserve Board does not have any control and/or influence over mortgage rates. However, the actions that the Fed takes does have a direct impact all types of interest rates which includes mortgage rates. The mortgage markets are taking the July Fed rate cut in pricing out mortgage interest rates. This is the reason why mortgage interest rates are so low.
Dale Elenteny, a senior mortgage banker and underwriter at Gustan Cho Associates issued the following statement:
- If you’ve been waiting to lock in a mortgage, this could be the time. Because markets are forward-looking, July’s expected rate drops are “baked into” today’s rates. Mortgage rates continue downward in anticipation of big Fed moves in July.
For more information on this blog or other mortgage-related topics, please contact us at Gustan Cho Associates at 800-900-8569 or text us for faster response. Or email us at gcho@gustancho.com.
